What is Personal Contract Hire?
Personal Contract Hire (PCH) is a flexible and affordable way for individuals to drive a brand‑new car without
committing to ownership.
It provides predictable monthly payments and eliminates resale or depreciation concerns.
Ideal for those who like to change vehicles frequently and avoid long‑term financial commitments associated with
buying.
How does It work?
A finance company purchases the vehicle and leases it to you for an agreed term (24–60 months).
Your monthly rental includes VAT and is determined by contract length, mileage allowance, vehicle value and
predicted depreciation.
You choose your initial rental amount – typically equivalent to 1 to 12 monthly rentals.
Vehicles are supplied brand‑new via franchised UK dealers and come with manufacturer warranty as standard.
What’s included?
Road Fund Licence for the full contract.
Optional maintenance packages that cover servicing, mechanical repairs, breakdown assistance and tyre
replacement.
If you choose customer maintenance, you are responsible for all servicing and repair costs.
Insurance is not included; a fully comprehensive policy is normally required.
End of contract process
You return the vehicle to the funder at the end of the agreement.
Mileage and condition are assessed in line with BVRLA Fair Wear & Tear standards.
If you exceed mileage or return the vehicle with excessive damage, charges may apply.
You can normally extend the contract or enter into a new agreement with a new vehicle.
The broker’s role
Brokers compare multiple leasing providers to find competitive rentals.
They present quotes on any make or model from approved UK dealers.
The broker manages the credit application, vehicle sourcing, documentation and delivery.
They assist with mid‑term adjustments, renewals and end‑of‑contract planning.
Benefits of Personal Contract Hire
Fixed predictable monthly payments including VAT.
No concern about resale values or depreciation losses.
Optional maintenance packages help manage running costs.
Regular access to new vehicles with modern technology and safety features.
Ability to adjust mileage mid‑contract (subject to funder approval).
Downsides of PCH
You will not own the vehicle at any point.
Early termination fees can be substantial, typically around 50% of remaining rentals.
Excess mileage charges apply if you exceed the contracted allowance.
Damage outside BVRLA standards will be chargeable.
A strong credit profile and stable income are required to obtain approval.
Skyfleet Limited is a company registered in England and Wales with company number 03463255. VAT registration Number: 680053649.
Registered office: Unit 3, High House Business Park, Kenardington, Kent, TN26 2LF. Skyfleet Limited is a credit broker, not a lender. We work
with a selected panel of lenders. Skyfleet Limited is authorised and regulated by the Financial Conduct Authority, for credit related regulated
activities. Telephone: 01233 730260 Email: sales@skyfleet com Website: www.skyfleet.com
Target Market
Individuals aged 18+ with a full UK licence.
People that want predictable motoring costs and easy vehicle replacement cycles.
Drivers who prefer not to own a vehicle and want a simple return process at the end.
Alternative Options
Personal Contract Purchase (PCP) – offers the option to own by paying a final balloon amount.
Hire Purchase (HP) – straightforward ownership through instalments with no return option.